Rs 15.62 arba worth of issues entering the market, of which Rs 14.3 arba coming from primary market; huge funds to be mopped up from investors in near future

Sun, Jul 14, 2019 6:00 AM on Exclusive, IPO/FPO News, Latest, Stock Market,
Rs 15.62 a...

The approved list of issues flooding the primary market of Nepal is getting longer. Currently, there are one IPO issue, three mutual fund issues and three debenture issues in line that have been already approved by Securities Board of Nepal (SEBON).

Likewise, in secondary market two companies' right issue is ongoing and three more are in the approved list.

S.N.

Company Name

Type of Issue

Units

Amount (Rs.)

Issue date

1

Sabaiko Laghubitta Bittiya Sanstha

IPO

                 530,000

               53,000,000

17-Jul

2

NMB 50

Mutual Fund

         120,000,000

         1,200,000,000

 

3

Siddhartha Investment Growth Scheme-2

Mutual Fund

         140,000,000

         1,400,000,000

 

4

NIC Asia Balance Fund

Mutual Fund

         125,000,000

         1,250,000,000

 

5

10.25% Machhapuchchhre Debenture 2085

Debenture

              3,000,000

         3,000,000,000

 

6

10% Himalayan Bank Debenture 2083

Debenture

              3,000,000

         3,000,000,000

18-Jul

7

10.25% NIC Asia Debenture 2083/84

Debenture

              4,400,000

         4,400,000,000

 

8

Global IME Laghubitta Bittiya Sanstha

Right

              1,104,575

             110,457,500

 

9

Womi Laghubitta Bittiya Sanstha

Right

              1,010,880

             101,088,000

25-Jul

10

United Insurance Company

Right

              7,257,600

             725,760,000

 

11

Multipurpose Finance

Right

              3,585,264

             358,526,400

Ongoing

12

Janautthan Samudayic Laghubitta Bittiya Sanstha

Right

                 288,000

               28,800,000

Ongoing

   Total  

         409,176,319

       15,627,631,900

 

As you can see in the table above, one IPO issue worth Rs 5.3 crore is opening from July 17, 2019. Similarly, three mutual funds worth Rs 1.2 arba, Rs 1.4 arba and Rs 1.25 arba are going to be issued soon. Likewise the 10% Himalayan Debenture worth Rs 3 arba will be issued from July 18, 2019 and the other two debentures worth Rs 3 arba and Rs 4.4 arba will be issued soon. This makes a total of Rs 14.3 arba worth of issue in primary market only.

The table also mentions five right issues, two of which are ongoing and 3 will be issued soon. This make a total of Rs 1.32 arba mop-up in the secondary market via right issues. However, lately most right issues are going undersubscribed which calls upon opening of auction for the unsold units and most often the cutoff of auction is higher than Rs 100. Therefore, in reality these right issues might mop-up more than Rs 1.3 arba.

Thus, looking at both the primary and secondary market, a total of Rs 15 arba 62 crore 76 lakh 31 thousand 900 will be mopped up from the investors in the near future.